Asia investment fund, Fidelity Asian Values Plc (LON:FAS) has published its monthly factsheet for the 12-month period ended 31 May 2022.
Portfolio Manager Commentary
The Trust’s NAV rose 6.6% during the 12-month period ended 31 May 2022, outperforming its reference index which rose 1.3%. The Trust’s share price fell 5.6% over the same period.
Stock selection was the key contributor to the fund’s relative performance, particularly in Australia, India and South Korea. Meanwhile, an underweight in Taiwan and selections in Sri Lanka held back the relative performance. From a sector perspective, selections within health care and industrials added value. The fund is managed with a value approach, which moved into favour as value stocks outperformed the growth names year to date as of May 2022, thereby adding to performance.
Of late, investors appear to be rotating out of growth stocks and into value names in the Asian small cap space and this trend should continue as small cap value stocks remain at a significant discount to small cap growth stocks in Asia. The manager continues to believe that owning good businesses, run by competent managements at attractive prices is the most time-tested way to make money in the stock market.
Overall, the Trust was overweight consumer discretionary, financials, consumer staples and utilities among others. At a country level, it was overweight China, Australia and Indonesia among others.
Fidelity Asian Values Plc (LON:FAS) provides shareholders with a differentiated equity exposure to Asian Markets.
Asia is the world’s fastest-growing economic region and the trust looks to capitalise on this by finding good businesses, run by good people and buying them at a good price.